OPEN-SOURCE SCRIPT
Orange Flag
How it works
The indicator pulls daily data from four market internals and assigns points based on whether each one is at an extreme reading:
YRHI-YRLO spread (52-week new highs minus new lows on NASDAQ): +3 points if ≥ 75
MMTW (Russell 2000 stocks above 50-day MA): +2 points if ≥ 55
S5FI (S&P 500 stocks above 50-day MA): +2 points if ≥ 65
VIX: +1 point if < 15
Maximum score is 8 points. When the total reaches 5 or higher, the chart background paints orange to flag a risk-on extreme.
How to use it
The orange flag identifies conditions historically associated with frothy market tops — broad participation, lots of new highs, and complacent volatility all aligned. It is a context filter, not a trade signal. When the flag is on, consider tightening risk controls, fading new long entries on extension, or being more selective about chasing strength.
The flag should be relatively rare. If it fires often, the thresholds are too loose for current market structure.
Display
A status table in the top-right corner shows each component's current value, threshold, and points contributed, plus the total risk score and flag state.
Settings
All thresholds, the flag trigger level, and the underlying ticker symbols are configurable. Defaults use TVC, USI, and INDEX prefixes that resolve cleanly on TradingView.
Alerts
Two alert conditions are available: orange flag triggered (score crosses up through threshold) and orange flag cleared (score drops back below threshold).
Notes
Data is pulled at the daily timeframe regardless of chart timeframe, with lookahead_off to prevent intrabar repaint. The score updates only when the daily close prints. Built in Pine Script v6.
The indicator pulls daily data from four market internals and assigns points based on whether each one is at an extreme reading:
YRHI-YRLO spread (52-week new highs minus new lows on NASDAQ): +3 points if ≥ 75
MMTW (Russell 2000 stocks above 50-day MA): +2 points if ≥ 55
S5FI (S&P 500 stocks above 50-day MA): +2 points if ≥ 65
VIX: +1 point if < 15
Maximum score is 8 points. When the total reaches 5 or higher, the chart background paints orange to flag a risk-on extreme.
How to use it
The orange flag identifies conditions historically associated with frothy market tops — broad participation, lots of new highs, and complacent volatility all aligned. It is a context filter, not a trade signal. When the flag is on, consider tightening risk controls, fading new long entries on extension, or being more selective about chasing strength.
The flag should be relatively rare. If it fires often, the thresholds are too loose for current market structure.
Display
A status table in the top-right corner shows each component's current value, threshold, and points contributed, plus the total risk score and flag state.
Settings
All thresholds, the flag trigger level, and the underlying ticker symbols are configurable. Defaults use TVC, USI, and INDEX prefixes that resolve cleanly on TradingView.
Alerts
Two alert conditions are available: orange flag triggered (score crosses up through threshold) and orange flag cleared (score drops back below threshold).
Notes
Data is pulled at the daily timeframe regardless of chart timeframe, with lookahead_off to prevent intrabar repaint. The score updates only when the daily close prints. Built in Pine Script v6.
Script open-source
Nello spirito di TradingView, l'autore di questo script lo ha reso open source, in modo che i trader possano esaminarne e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricordiamo che la ripubblicazione del codice è soggetta al nostro Regolamento.
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.
Script open-source
Nello spirito di TradingView, l'autore di questo script lo ha reso open source, in modo che i trader possano esaminarne e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricordiamo che la ripubblicazione del codice è soggetta al nostro Regolamento.
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.